SENATE BILL REPORT

SB 5830

As of February 19, 2001

Title:  An act relating to participating in insurance plans and contracts by separated plan 2 members of certain retirement systems.

Brief Description:  Participating in insurance plans and contracts by separated plan 2 members of certain retirement systems.

Sponsors:  Senators Thibaudeau, Winsley, Oke, Kline, Kastama, T. Sheldon, Eide, Prentice, Snyder, Zarelli, Swecker, West and Rasmussen.

Brief History:

Committee Activity:  Health & Long‑Term Care:  2/20/01.

SENATE COMMITTEE ON HEALTH & LONG‑TERM CARE

Staff:  Jonathan Seib (786‑7427)

Background:  Current law allows ?separated employees@ to continue their participation in health insurance plans offered by the Public Employees Benefits Board (PEBB) through the state Health Care Authority.

Until March 1, 2002, ?separated employees@ are defined to include, among others, school district or educational district employees who separate from their employment, are 55 or older, and  who have at least ten years of service under the Teacher's Retirement System Plan 3 or the School Employees' Retirement System Plan 3.

As of March 1, 2002, the definition will be expanded to include state employees who separate from employment, are 55 or older, and  who have at least ten years of service under the Public Employees' Retirement System Plan 3.

Summary of Bill:  As of the effective date of the act, the definition of ?separated employees@ for purposes of continuing participation in PEBB health plans is expanded to include school district or educational district employees who separate from employment, are 55 or older, and  who have at least ten years of service under the Teacher's Retirement System Plan 2 or the School Employees' Retirement System Plan 2.

As of March 1, 2002, the definition is further expanded to include state employees who separate from employment, are 55 or older, and  who have at least ten years of service under the Public Employees' Retirement System Plan 2.

Appropriation:  None.

Fiscal Note:  Requested on February 13, 2001.

Effective Date:  Section 1 takes effect ninety days after adjournment of session in which bill is passed, and expires on March 1, 2002.  Section 2 takes effect March 1, 2002.